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LARGE & MEDIUM SCALE ENTERPRISES

4.1 GROWTH OF LARGE AND MEDIUM SCALE ENTERPRISES

Industrial progress is one of the most important indicators of the economic development of a region. The industrial development, in turn, largely depends, on the large and medium scale industry due to its large employment potential, higher levels of industrial efficiency and ancillary spin off. Year wise position of these units is given below in Table 4.01.

TABLE 4.01 Growth of Large & Medium Enterprises in Himachal Pradesh

Year

Units (Nos.)

Investment

( in Crores)

Employment (Nos.)

Up to 31.02.1991

110

200.84

15125

1991-92

2

23.16

155

1992-93

2

41.00

467

1993-94

7

139.33

2077

1994-95

8

356.95

1869

1995-96

18

686.13

2774

1996-97

13

148.26

1428

1997-98

13

435.48

2093

1998-99

1

54.27

115

1999-00

8

203.08

2827

2000-01

6

22.03

117

2001-02

5

64.06

655

2002-03

3

3.48

121

2003-04

15

34.94

762

2004-05

35

302.87

3473

2005-06

64

501.59

4606

2006-07

46

615.26

4568

2007-08

19

482.64

1923

2008-09

46

1141.03

4225

2009-10

23

1343.82

2703

2010-11

27

2118.33

3740

2011-12

16

1879.29

2981

2012-13

7

211.69

339

2013-14

3

161.21

784

2014-15

(Up to 31/12/14)

5

129.86

867

Total

502

11300.62

60794

Source: Director of Industries, Himachal Pradesh

Industrialization in Himachal Pradesh, where there are severe topographical, geographical and socio-economic constraints, largely depends on infrastructure development. With the gradual increase in investment in infrastructural facilities, through successive five year plans and formulation of a well defined industrial policy, Himachal Pradesh has been able to offset the location disadvantages to some extent. As a result considerable numbers of small, medium and large scale units are coming up in the state. As on 31.12.2014, 502 Medium & Large Scale enterprises have been reported in Himachal Pradesh with an investment of 11300.62 Crores and providing employment to 60794 persons.

Table: 4.02 Industries wise Large & Medium Scale after the Special package of incentives:

up to 31.12.2014

S. No.

Industry Group

No. of Units

% of Total

I.

Group-A (Non Thrust Sector)

1.

Chemicals

34

4.50

2.

Textiles

98

12.94

3.

Electronics

57

7.53

4.

Electronics

83

10.96

5.

Automobiles

57

7.53

6.

Misc. Engg.

50

6.60

7.

Packaging

45

5.94

8.

Steel

66

8.72

9.

Foot wears

21

2.77

10.

Plastics

77

10.17

11.

Others

159

21.00

Total

757

100.00

II.

Group-B (Thrust Sector)

1.

Food processing Industries

85

26.81

2.

Horticulture and Agro

0

0.0

3.

Aromatic/Medicinal herbs based soap

56

17.67

4.

Wool & Wool Products

0

0.0

5.

Pharma Prducts

176

55.52

6.

IT Based Industries

0

0.0

7.

Mineral Water Bottling

0

0.0

8.

Handicrafts

0

0.0

9.

Others (Honey, horticulture, Sports goods, Eco-Tourism

0

0.0

Total

317

100.00

Grand Total (I&II)

1074

Source: Director of Industries, Himachal Pradesh

4.2 INDUSTRIAL SERVICES AND INFRASTRUCTURE DEVELOPMENT

To provide services and facilities to the existing and prospective entrepreneurs. District industries Centers (DIC’s) have been functioning in all districts of the state. Besides, 5 Single Window Clearance Agencies have been setup in industrial areas of Parwanoo, Baddi, Paonta Sahib, Kala Amb & Golthai which provide services and facilities required by the industries under the single roof. With a view to provide umbrella support to existing and new ventures, the state government has set up a State Level Single Window Clearance and Monitoring Authority (SLSWC&MA)

Besides this 15 industrial estate have been developed with the infrastructure facilities at Sultanpur, Parel, Shivenagari (Holi), Kangra, Dhera , Jawali, keylong, Saigloo, Pali, Pandranu, Raighat, Sunda Bhonda, Parwanoo, Chambaghat and Dharmpur. In addition to this project of an industrial Growth Center is being implemented by the state Govt. with the assistance of Central Government at Sansarpur Terrace Ph.-I, Bain Attarian, Phase-II, Raja- Ka –Bag, Phase-III, Gwalthai Ph.IV and Banalgi Ph. V.

To attract investment in the state and to ensure easy availability of land to the prospective entrepreneurs in various parts of the state, the department of industries has constituted a land Bank comprising of government and private land which are available for setting up industries. The department is providing escort and facilitation services in case the entrepreneurs are willing to purchase private land.

4.3 IMPACT OF INDUSTRIAL PACKAGE:

Since the implementation of new industrial package announced by central Govt. in respect of Himachal Pradesh in January 2003, industrial activities in general and particularly in district Solan, Sirmour and Una has picked up in the state as a result of which large number of units particularly in the line of Pharmaceuticals electrical/ electronics, Hosiery & Textile and herbal based products have came up in the state. The impact of this package has also been noticed in case of Medium and Large scale industries. Major Industrial houses ACC, Gujrat Ambuja Cement, Birla, Dabar, Verdhmaan, Mohan Meakin, Eicher , HFCL, Godrej, Wipro , Himdustan Lever Ltd., Cipla Ltd., Ajanta India Ltd.., Jhonson and Jhonson , Cadbery , Colgate Pamolive, Dr. Reddy’s laboratories Cadila healthcare and franchises of various electrical appliances/sports shoes manufacturers such as LG, Bajaj, Phlips, Phoenix , Maharaja, Kapkon, Electronics, Revere Pentland, Lee Copper and Action etc. have already started Commercial production in the state.

Due to the increase in industrial activities unemployment problem which the state was facing in the past has also been solved to a great extent as the state Govt. has put a condition on the new industries to provide 70% employment to the Himachali’s.